IP/01/532
Brussels, 10 April 2001
Commission clears joint venture between Philips
and LG Electronics
The European Commission has cleared a joint venture between Koninklijke
Philips Electronics N.V. (Philips) and LG Electronics Inc. (LGE) of South
Korea in the field of cathode ray tubes (CRTs) for television sets and
computer monitors.
Dutch-based Philips is one of the world's largest electronics companies with
operations in more than 60 countries and activities in the areas of lighting, consumer
electronics, domestic appliances, components, semiconductors and medical
systems. It is also an important player in colour television sets, colour picture tubes
for televisions and monitors, and one-chip TV products.
LGE is a Korean-based integrated electronic goods manufacturer with operations in
more than 36 countries. LGE makes consumer electronics products such as
television sets, VCRs, refrigerators, air conditioners and information systems
products, including CD-ROMs and PCs.
The notified joint venture combines Philips’ and LGE’s world-wide activities in CRTs
for televisions and computer equipment applications (monitors), which together
represent some 95% of total CRT applications. The markets are considered to be
world-wide.
The investigation showed that the parties’ combined market positions would not be
very strong in the overall market for CRTs or in either of its sub-segments. Moreover,
the parties will face strong competition from such world-wide players as Sony,
Matsushita, Toshiba, Thomson and Chungwha. The investigation also showed that
the operation would not give rise to competition concerns in the vertical market for
ferrite yokes rings, used to make a CRT component. Finally, the Commission took
the view that the companies were unlikely to coordinate their behaviour in
downstream markets for television sets and computer monitors due to the
complementary nature of their respective activities.